PwC helps hospital increase revenue, reduce expenses, and regain bond covenant compliance by streamlining its operations.
A not-for-profit community hospital had recently converted its information system to a beta version of a major vendor's platform. The new system, which was not fully deployed across all modules, required daily code changes that led to inefficient revenue cycle functions and required clinical staff to use both paper and electronic processes. These system issues, combined with operational inefficiencies, led to a decrease in days cash on hand and an increase in days in accounts receivable. These financial and operational barriers had led to an operating loss for three consecutive years.
To achieve the necessary transformation, we identified opportunities for improvement across a broad range of financial and operational areas. We then assembled an integrated team of specialists to focus on the revenue cycle, process improvement, cost containment, and technology utilization to help the hospital increase revenue, decrease costs, and develop growth strategies.
As a result of our initiatives, the hospital was able to: increase total patient cash by $35 million; achieve total revenue enhancement of $18.7 million on its operating income; develop an enhanced point of service (POS) collections program that realized approximately $400,000 in POS payments; decrease net days in accounts receivable by 11 days; implement sensitized pricing, which was responsible for an increase in net revenue by approximately $5 million; and cut the costs of its operating income by $13 million.
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